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NEW YORK (TheStreet) -- Jazz Pharmaceuticals (JAZZ - Get Report) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
TheStreet Ratings team rates JAZZ PHARMACEUTICALS PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate JAZZ PHARMACEUTICALS PLC (JAZZ) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 13.0%. Since the same quarter one year prior, revenues rose by 39.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for JAZZ PHARMACEUTICALS PLC is currently very high, coming in at 91.27%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.87% is above that of the industry average.
- Net operating cash flow has significantly increased by 67.18% to $132.42 million when compared to the same quarter last year. In addition, JAZZ PHARMACEUTICALS PLC has also vastly surpassed the industry average cash flow growth rate of -11.92%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 47.6% when compared to the same quarter one year prior, rising from $55.29 million to $81.61 million.
- JAZZ's debt-to-equity ratio of 0.98 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.01 is very high and demonstrates very strong liquidity.
- You can view the full analysis from the report here: JAZZ Ratings Report